Kentucky Inheritance and Estate Tax Forms and Instructions

1 COMMONWEALTH OF KENTUCKYDEPARTMENT OF REVENUEK entuckyInheritance and Estate TaxForms and InstructionsFor Dates of Death on or After January 1, 2005(Revised February, 2018) Kentucky Department of RevenueMission StatementAs part of the Finance and Administration Cabinet, the mission of the Kentucky Department of Revenue is to administer tax laws, collect revenue, and provide services in a fair, courteous, and efficient manner for the benefit of the Commonwealth and its citizens. * * * * * * * * * * * * *The Kentucky Department of Revenue does not discriminate on the basis of race, color, national origin, sex, age, religion, disability, sexual orientation, gender identity, veteran status, genetic information or ancestry in employment or the provision of all taxable assets pass to exempt beneficiaries and a Federal Estate and Gift Tax Return is not required, it is not necessary to file an Inheritance Tax Return with the Kentucky Department of Revenue.

2 An affidavit of exemption will be accepted for the final settlement and closing of the administration of an Estate . If Inheritance tax is due the Commonwealth of Kentucky , Form 92A200 or 92A205 should be affidavit of exemption is to be filed only with the court. Do not send a copy of the affidavit to the Kentucky Department of Affidavit of ExemptionAFFIDAVIT OF EXEMPTION Affiant _____ , being first duly sworn, states that he/she is fiduciary or beneficiary of the Estate of _____ , who died on the _____ day of _____ , _____ , a resident of _____ County, Kentucky . Affiant states that all assets of the Estate pass to exempt beneficiaries pursuant to Kentucky Revised Statute * or exempt organizations pursuant to Kentucky Revised Statute ** either by virtue of the decedent s will, the intestate laws of this state, or by contract (survivorship, payable on death, trust, etc.)

3 Affiant further states that a Kentucky Inheritance Tax Return will not be filed since no death tax is due the state and a Federal Estate and Gift Tax Return (Form 706) is not required to be filed because the gross Estate is less than the required amount set out in Section 2010(c) of the Internal Revenue Code. This affidavit is being submitted to satisfy the requirements of Kentucky Revised Statute _____ Signature Witness my hand this _____ day of _____ , _____ . Sworn and subscribed to before me by _____ this _____ day of _____ , _____ . _____ Notary Public My commission expires_____ *Exempt beneficiaries under KRS include spouse, children, stepchildren, grandchildren, parent, brother, and sister.**Exempt organizations include educational, religious or other institutions, societies, or associations, whose sole purpose is to carry on charitable, educational, or religious work.

4 Also, cities, towns or public institutions in this state qualify as exempt organizations provided that any transfer to such an organization is for public purposes. WHAT S INCLUDEDINHERITANCE AND Estate TAX Forms No Tax Due Return (resident and nonresident) and Instructions (Form 92A201) Inheritance Tax Return (resident and nonresident) (Form 92A200) Inheritance Tax Return (short form) (resident and nonresident) (Form 92A205) Real Estate Valuation Information Form (Form 92A204) Election to Qualify terminable interest property and/or Power of Appointment property (Form 92A936) Election to Defer the Payment of Inheritance Tax Through Installments (Form 92A928) Affidavit of Exemption (Form 92A300) Inheritance Tax Table for Resident Decedent Inheritance Tax Table for Nonresident Decedent Blanket ConsentGENERAL INFORMATION Supplemental Documents.

5 1 Payment of Tax Discount .. 1 Installment Payments .. 1 interest .. 1 Penalties .. 1 property to be Included on the Return .. 1 Valuation of property Fair Cash and Agricultural .. 2 Deductions .. 2 Federal Estate Tax .. 2 qualified terminable interest property (QTIP) and/or Powers of Appointment (POA) .. 2 property Previously Taxed .. 2 Example of Credit for Previously Taxed property .. 3 Distribution .. 4 Exemptions for Beneficiaries of a Resident Decedent .. 4 Exemptions for Beneficiaries of a Nonresident Decedent .. 5 Bequest of Tax .. 5 property Set Aside Under KRS (1)(c) .. 5 Estate Tax .. 5 & 6 Value of a Life Estate .. 6 Amended Return .. 7 Acceptance Letter .. 7 Protest and Appeal.

6 7 Helpful Hints Where to Obtain Assistance .. 7 Reporting of Intangible property Tax .. 7 Fiduciary Return .. 7 Office of the Taxpayer Ombudsman .. 7 Website for Forms .. 7 Definitions .. 8 & 9 Taxpayer Service Centers Locations and Phone Numbers .. 10 Kentucky Taxpayers Bill of Rights .. inside back coverINHERITANCE AND Estate TAX Forms IN THIS PACKETThe Forms in this packet should only be used if the date of death occurred on or after January 1, 2005. The Forms may be dupli-cated on a computer and the space allocated for each item may be decreased or increased depending on the amount of space required. The Forms may be used for a decedent who was a resident or a nonresident of all taxable assets pass to exempt beneficiaries and a Federal Estate and Gift Tax Return is not required, it is not neces-sary to file an Inheritance Tax Return with the Kentucky Department of Revenue (DOR).

7 An Affidavit of Exemption will be accepted for the final settlement and closing of the administration of an Estate . If Inheritance tax or Estate tax is due the Commonwealth of Kentucky , Form 92A200 or 92A205 should be used. If the date of death occurred prior to January 1, 2005, contact the Financial Tax Section, Department of Revenue, Station 61, 501 High Street, Frankfort, KY 40601-2103, (502) 564-4810, fax (502) Forms are included in this booklet. Choose one unless an Affidavit of Exemption is No Tax Due Return (Form 92A201)This return may be used for an Estate ( Kentucky resident or nonresident) if: (1) there is no Kentucky Inheritance tax due, (2) the date of death is on or after January 1, 2005, and (3) the entire Estate passes to beneficiaries listed in the following group either by contract (survivorship, payable on death, trust, etc.)

8 , the decedents will, or the intestate laws of this state: (1) Surviving spouse, parent (2) Child (adult or infant) child by blood, stepchild, child adopted during infancy, or child adopted during adulthood who was reared by the decedent during infancy (3) Grandchild issue of child, stepchild, child adopted during infancy, or of a child adopted during adulthood who was reared by decedent during infancy (4) Brother, sister (whole or half) Refer to KRS for (1) through (4) above (5) Exempt organizations Refer to KRS Exempt organizations include educational, religious or other institutions, societies, or associations, whose sole purpose is to carry on charitable, educational, or religious work. Also, cities, towns or public institutions in this state qualify as exempt organizations provided that any transfer to such an organization is for public purposes.

9 2. Inheritance Tax Return (Form 92A200)This return must be used for an Estate (resident or nonresident) when: (1) the date of death is on or after January 1, 2005, and (2) any assets of the Estate pass to taxable beneficiaries or taxable organizations, or when Forms 92A201 and 92A205 do not are on the back of each Inheritance Tax Return (Short Form) (Form 92A205)This return may be used for an Estate ( Kentucky resident or nonresident) when : (1) a federal Estate tax return is not re-quired to be filed, (2) the assets of the Estate consist of 10 items or less, (3) no gifts or transfers where made within three years of death without full consideration, (4) no real or personal property was transferred with a retained life interest , (5) the decedent did not possess any power to appoint any real or personal property or have the use of any qualified terminable interest property , and (6) the decedent had not received any real or personal property from another decedent within five years and paid Inheritance tax on the DEPARTMENT USE ONLY__ __ __ __ __ __ / __ __ / __ __ / __ __ __ __ Account Number Tax Mo Year92A201 (6-16)

10 Commonwealth of KentuckyDEPARTMENT OF REVENUEK entucky InheritanceTax ReturnNO TAX DUEThis return may be used if: (1) there is no Kentucky Inheritance tax due, (2) the date of death is on or after January 1, 2005, and (3) the entire Estate passes to beneficiaries listed in the following groups either by contract (survivorship, payable on death, trust, etc.), the decedent s will, or the intestate laws of this state:(1) Surviving spouse, parent(2) Child (adult or infant) child by blood, stepchild, child adopted during infancy, or a child adopted during adulthood who was reared by decedent during infancy(3) Grandchild issue of child by blood, stepchild, child adopted during infancy, or of a child adopted during adulthood who was reared by decedent during infancy(4) Brother, sister (whole or half) Refer to KRS for (1) through (4) above(5) Exempt organizations Refer to KRS Exempt organizations include educational, religious or other institutions, societies, or associations, whose sole purpose is to carry on charitable, educational, or religious work.